Are You Untouchable?

Forget the movies, TV shows and epic thrillers for just one second, and try to consider who is an untouchable. As the term would imply, a person that is untouchable could be seen as someone who is above the law, someone that cannot be threatened by what everyday people are subject to.

untouchable traits

In sports, the untouchables are perceived as the marquee players who dominate their circuit in the regular season and win championships in the playoffs. To owners and management, their impact transcends beyond the field; they generate record ticket sales at stadiums and stratospheric merchandise sales levels in stores, enriching owners.

But owners are not alone: untouchables are perceived as being able to increase profiles and sales for corporate sponsors as well. Fans assume that these stars never get traded, even when they methodically get blamed for the team's failures.

In business, untouchables take on a different dimension. While they are surely less popular to the general media and overall population, investors and business media, they are the darlings that move stock valuations, market leadership positions and even consumer sentiment.

But beyond the façade, is there really such thing as an untouchable? My answer is yes and no. Read on to see why.

stars are expendable

When John Reed's Citicorp merged with Sandy Weill's Travelers Group in the late 1990s, in the then largest merger ever, many believed that the two leaders would ultimately bow out and make way for the trusted and respected Jamie Dimon, the then number 2 at Travelers and protégé of Weill.

Dimon was widely believed to be a so-called untouchable because he was a star and the likely successor as Chairman of a merged Citigroup, when the 60-plus-year-old would retire.

Power struggles, turf battles and egos ultimately led to Dimon's dismissal in November 1998. Interestingly, Citigroup stock lost tremendous value immediately (billed by the media as the Dimon effect). Why did the market react this way? This shook Citigroup's succession and management future — and the market was not aware. But the stock recovered.

I can surely tell you that while employees, consumers and investors were dismayed at Dimon's firing, he was, at most, "slightly" surprised.

do they think they're safe?

Before I pretend to know what an untouchable thinks, allow me to make the following statement: The first thing to consider is that, for all intents and purposes, there is a distinction to be made between individuals who believe that they are untouchable, and those who know they are not but are perceived as such by others.

Dimon was a very smart individual who knew that if his boss, Sandy Weill, would now be co-CEO with Citicorp's John Reed, it would clutter the landscape and regardless of age and original succession plan, render him redundant. And I use "redundant" with a tremendous amount of respect for Dimon.

Later, when he joined Bank One, it was his operational and financial expertise, as well as the trust he commanded from Wall Street, that improved the dire situation of his new employer, resulting in the share price appreciation of 27% in 12 months.